Philippine Daily Inquirer
9:29 pm | Friday, August 26th, 2011
Supermarket chain Puregold Price Club Inc. will price and launch on Sept. 21 an initial public offering that it hopes could raise up to P12.4 billion for its expansion.
The Philippine Stock Exchange approved the offering, only the second Philippine IPO this year, involving the sale of as much as 600 million common shares at up to P18 per share.
The company has set aside 90 million shares for a greenshoe option.
The shares to be offered represent 34.5 percent of Puregold’s issued and outstanding capital stock after the IPO.
The offer will close on Sept. 29, with listing set for Oct. 5.
The IPO, which follows the $52-million share sale by Megawide Construction Corp. in February, was originally set for March but was delayed due to volatile market conditions.
HSBC and UBS AG are international lead managers, while BDO Capital & Investment Corp. and First Metro Investment Corp. are the domestic lead managers for the share sale.
The company is bullish about the prospects of its IPO and believes that the “false” allegation that it is engaged in smuggling will not harm the interest of its potential investors.
Asked in a briefing on Friday for reaction on concerns that the controversy might affect the offering, Puregold president Leonardo Dayao said, “I don’t think so.”
“We are offering (the shares) based on merit,” he said, citing the favorable growth prospects of the company.
Earlier, Puregold denied allegations that it had engaged in smuggling, saying it had been observing legal and aboveboard procedures in all its transactions over the years.
Dayao said Puregold, which currently has 72 stores operating nationwide, was aiming at increasing its branch network to 100 stores after the IPO.
It intends to put up 25 more stores next year and another 25 in 2013.
Dayao said proceeds from the IPO would be used for the expansion of the branch network this year.
Dayao said Puregold was also optimistic about its expansion plans, saying there was much room in the economy to accommodate more supermarkets given the rising demand of a growing population.
He also said many areas in the country still lacked supermarkets and were relying mainly on sari-sari stores to meet the demands of their population.
Puregold is planning to expand to Davao, Rizal, Cavite, Bataan, Pangasinan, Baguio, Ilocos Norte, Cebu City, Tarlac City, La Union and Albay.
In a congressional hearing on smuggling earlier, Puregold was accused of engaging in the illegal activity. A legislator accused finance and customs officials of giving protection to Puregold.
Dayao said the company strongly denied the allegations, and that these should not harm the company’s IPO plans and growth prospects given that the claims were not substantiated. Michelle V. Remo
No comments:
Post a Comment